Gift tax valuation is the process of determining the fair market value of assets transferred as gifts for tax reporting purposes. In the United States, accurate valuation is essential to ensure compliance with federal tax regulations and proper filing of gift tax returns. Assets subject to gift tax valuation may include real estate, business interests, stocks, or personal property. The valuation is generally based on what a willing buyer would pay a willing seller at the time of the gift. Proper gift tax valuation helps establish tax liability, supports documentation, and reduces the risk of disputes with tax authorities.